Does The Market Have A Low Tolerance For Energy Recovery, Inc.'s (NASDAQ:ERII) Mixed Fundamentals?
Does The Market Have A Low Tolerance For Energy Recovery, Inc.'s (NASDAQ:ERII) Mixed Fundamentals?
With its stock down 39% over the past three months, it is easy to disregard Energy Recovery (NASDAQ:ERII). We, however decided to study the company's financials to determine if they have got anything to do with the price decline. Stock prices are usually driven by a company's financial performance over the long term, and therefore we decided to pay more attention to the company's financial performance. Particularly, we will be paying attention to Energy Recovery's ROE today.
纳斯达克的股价在过去三个月里下跌了39%,人们很容易忽视能源回收(Energy Recovery)。然而,我们决定研究该公司的财务状况,以确定它们是否与价格下跌有关。股票价格通常是由公司的长期财务表现推动的,因此我们决定更多地关注公司的财务表现。特别是,我们今天将关注能源回收的净资产收益率。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
股本回报率(ROE)是用来评估公司管理层利用公司资本效率的关键指标。换句话说,这是一个衡量公司股东提供的资本回报率的盈利比率。
See our latest analysis for Energy Recovery
查看我们对能源回收的最新分析
How Do You Calculate Return On Equity?
你如何计算股本回报率?
ROE can be calculated by using the formula:
可使用以下公式计算净资产收益率:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回报率=(持续经营的)净利润?股东权益
So, based on the above formula, the ROE for Energy Recovery is:
因此,根据上述公式,能量回收的净资产收益率为:
5.8% = US$11m ÷ US$182m (Based on the trailing twelve months to June 2023).
5.8%=1100万美元×1.82亿美元(基于截至2023年6月的12个月)。
The 'return' is the income the business earned over the last year. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.06 in profit.
“回报”指的是企业在过去一年中获得的收入。另一种想法是,每价值1美元的股本,公司就能够赚取0.06美元的利润。
Why Is ROE Important For Earnings Growth?
为什么净资产收益率对收益增长很重要?
So far, we've learned that ROE is a measure of a company's profitability. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes.
到目前为止,我们了解到净资产收益率是衡量一家公司盈利能力的指标。根据公司选择再投资或“保留”多少利润,我们就能够评估一家公司未来产生利润的能力。一般来说,在其他条件相同的情况下,股本回报率和利润留存较高的公司比不具备这些特征的公司有更高的增长率。
Energy Recovery's Earnings Growth And 5.8% ROE
能源复苏的盈利增长和5.8%的净资产收益率
At first glance, Energy Recovery's ROE doesn't look very promising. Next, when compared to the average industry ROE of 14%, the company's ROE leaves us feeling even less enthusiastic. Therefore, it might not be wrong to say that the five year net income decline of 13% seen by Energy Recovery was probably the result of it having a lower ROE. However, there could also be other factors causing the earnings to decline. For example, it is possible that the business has allocated capital poorly or that the company has a very high payout ratio.
乍一看,Energy Recovery的净资产收益率(ROE)看起来并不是很有希望。其次,与14%的行业平均净资产收益率相比,该公司的净资产收益率让我们感到更不热情。因此,说Energy Recovery的五年净收入下降13%可能是因为它的净资产收益率(ROE)较低,这可能是正确的。然而,也可能有其他因素导致收益下降。例如,可能是企业的资本配置不当,或者公司的派息率非常高。
That being said, we compared Energy Recovery's performance with the industry and were concerned when we found that while the company has shrunk its earnings, the industry has grown its earnings at a rate of 8.2% in the same 5-year period.
话虽如此,我们将Energy Recovery的表现与行业进行了比较,当我们发现虽然该公司的收益有所缩水,但该行业在同一个5年期间的收益增长率为8.2%,我们对此感到担忧。
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. Doing so will help them establish if the stock's future looks promising or ominous. Has the market priced in the future outlook for ERII? You can find out in our latest intrinsic value infographic research report.
赋予一家公司价值的基础在很大程度上与其盈利增长挂钩。投资者下一步需要确定的是,预期的收益增长是否已经计入了股价。这样做将有助于他们确定该股的未来看起来是光明的还是不祥的。市场是否已经消化了ERII的未来前景?你可以在我们最新的内在价值信息图研究报告中找到答案。
Is Energy Recovery Efficiently Re-investing Its Profits?
能源回收是否有效地对其利润进行了再投资?
Energy Recovery doesn't pay any dividend, meaning that the company is keeping all of its profits, which makes us wonder why it is retaining its earnings if it can't use them to grow its business. So there might be other factors at play here which could potentially be hampering growth. For example, the business has faced some headwinds.
Energy Recovery不支付任何股息,这意味着该公司将保留所有利润,这让我们不禁要问,如果不能利用这些利润来增长业务,它为什么还要保留收益。因此,可能还有其他因素在起作用,可能会阻碍经济增长。例如,该业务一直面临一些不利因素。
Summary
摘要
In total, we're a bit ambivalent about Energy Recovery's performance. While the company does have a high rate of profit retention, its low rate of return is probably hampering its earnings growth. With that said, we studied the latest analyst forecasts and found that while the company has shrunk its earnings in the past, analysts expect its earnings to grow in the future. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
总体而言,我们对Energy Recovery的表现有点矛盾。虽然该公司的利润留存率确实很高,但其低回报率可能正在阻碍其收益增长。话虽如此,我们研究了最新的分析师预测,发现尽管该公司过去的收益有所缩水,但分析师预计其未来的收益将会增长。要了解更多分析师对该公司的最新预测,请查看分析师对该公司预测的可视化。
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本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。